For the Quarter Ending March 2025
North America
In the first quarter of 2025, the U.S. Polyolefin Elastomer (POE) market saw a slight decline of 1.77% compared to the previous quarter. This decrease was attributed to a combination of factors affecting both supply and demand. On the supply side, while feedstock availability remained steady, ongoing supply chain challenges, including freight delays and port congestion, continued to impact production efficiency. The proposed maritime fee increases raised concerns about future cost escalations, which could influence price dynamics. Despite these pressures, the availability of adequate inventory helped stabilize supply levels.
Demand remained relatively consistent, with key sectors such as automotive and construction contributing to moderate consumption. However, cautious consumer sentiment and the persistent impact of unchanged interest rates tempered more aggressive buying activity. The construction sector showed positive momentum, particularly in residential housing, but was hindered by rising material costs due to tariffs. Additionally, the packaging and consumer goods sectors continued to face challenges related to rising logistics costs.
Overall, while the market experienced some pressure from external factors, steady demand from key sectors and stable production conditions helped mitigate more significant price fluctuations, resulting in a modest decline for the quarter.
APAC
In Q1 2025, the Polyolefin Elastomer (POE) market in South Korea experienced a modest 0.81% decline quarter-on-quarter, driven by a combination of supply and demand factors. On the supply side, consistent feedstock availability, including Ethylene, helped maintain stability in production, despite minor disruptions caused by logistical adjustments and a power outage at the Daesan Petrochemical Complex. The easing of global port congestion and minimal impacts from new shipping alliances contributed to smooth operations. Demand for POE remained sluggish, particularly in the automotive and construction sectors, which faced ongoing challenges. While automotive sales showed some recovery, this was insufficient to drive significant POE demand growth. The construction industry continued to suffer from high costs, weak investment, and declining output, with no signs of a strong rebound in the short term. This subdued demand was reflected in the overall weak performance of the manufacturing sector, despite slight improvements in industrial sentiment. Global market dynamics remained mixed, with POE demand growing in some regions, such as China, but stagnating in others. These factors combined to result in a stable but slightly downward price trend for POE in South Korea, with broader economic conditions contributing to a cautious outlook moving forward.
Europe
In the first quarter of 2025, the Polyolefin Elastomer (POE) market in Germany experienced a slight downturn of 1.35% compared to the previous quarter. This decline was largely driven by subdued demand from key sectors, particularly automotive and construction, which continued to face challenges. The automotive sector showed signs of recovery in March, but overall demand remained restrained. In the construction sector, activity remained weak, with residential and commercial projects struggling, although civil engineering showed some potential for a rebound due to infrastructure funding. Logistical delays, particularly at major European ports like Hamburg and Rotterdam, also contributed to market volatility, as shipping disruptions hampered supply chain efficiency. Furthermore, ethylene feedstock prices edged lower, yet supply constraints persisted due to reduced cracker operations at key facilities, limiting any potential recovery in production. On the demand side, the packaging and electrical sectors faced mixed performance, with some areas showing resilience despite broader economic uncertainties. While the European Central Bank's interest rate cuts helped support consumption, cautious procurement strategies and inflation concerns kept market sentiment restrained. As a result, the POE market remained largely stable, with minor downward pressure on prices due to cautious market behavior and subdued industrial uptake.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, Polyolefin Elastomer (POE) prices in the US experienced a 4.01% decrease compared to the previous quarter, reflecting a mix of stable supply conditions and moderate demand fluctuations. The decline can largely be attributed to lower demand from the downstream sectors, including construction and packaging, while the automotive sector remained relatively stable. Despite these challenges, suppliers managed to maintain steady production levels and ensure the availability of adequate inventories, preventing more significant price changes.
Throughout the quarter, the automotive sector continued to support POE demand, with sales increasing year-over-year in both November and December. However, the construction sector showed signs of sluggishness, partly due to elevated mortgage rates and a decline in housing starts. Additionally, port congestion and logistical challenges persisted, leading to extended delivery times but not causing major disruptions in the supply chain.
Overall, this price decline reflects the balancing act between adequate inventories, cautious buying behavior, and mixed demand across key sectors, particularly the slowdown in construction activity and the ongoing challenges in the global supply chain. Looking forward, prices are expected to stabilize, supported by steady automotive demand and strategic supplier actions.
APAC
Over the last quarter, the Chinese Polyolefin Elastomer (POE) market experienced a modest price decrease of 4.12%. This decline was largely driven by stable supply conditions and balanced demand dynamics across key sectors. Manufacturing activity showed a positive uptick, supported by a growing automotive sector, which saw steady sales growth. The packaging and consumer goods industries also sustained consistent demand. Despite this, the construction sector showed signs of weakness, contributing to a cautious market sentiment. Construction activities were subdued, with only a slight improvement in December, while the automotive sector continued to perform well, particularly with an 11% increase in passenger vehicle sales in December. In the supply chain, smooth logistical operations ensured a stable flow of POE, with no major disruptions reported. Import data indicated consistent sourcing from key exporters like South Korea, Thailand, and Singapore, which contributed to balanced inventory levels. However, the subdued demand in construction and softening global export orders tempered overall market growth. While domestic demand, particularly from automotive and consumer goods sectors, remained firm, the outlook for POE prices reflects the ongoing uncertainty and the need for continued policy support to boost market recovery. The overall market remains steady but cautious, with a slight contraction in pricing for the quarter.
Europe
In Q4 2024, the price of Polyolefin Octene-based Elastomer (POE) in the German market witnessed a 4.82% decrease, settling at 2690 USD/MT FD-Hamburg by early January 2025. This decline was largely influenced by subdued demand dynamics and easing raw material costs, notably Ethylene, which saw a cumulative 10.1% reduction in November. Adequate inventories and improved supply conditions supported market stability, even as buyers maintained cautious procurement strategies. Manufacturing conditions showed improvement, with normalized production rates and reduced port congestion aiding supply chain resilience. However, weak economic sentiment across Europe and political uncertainties dampened the overall market environment. Inventory management strategies by suppliers and moderated input costs contributed to stable supply levels, preventing sharper price fluctuations. The automotive sector displayed moderate activity, with passenger car registrations experiencing monthly fluctuations but remaining below previous year levels. Meanwhile, the construction sector remained deeply affected by political turmoil and reduced investment confidence, marking persistent declines in activity and new orders. Despite these challenges, the European POE market maintained a balanced supply-demand scenario. However, weak buyer sentiment and a challenging macroeconomic backdrop led to the observed price correction during the quarter, setting a cautious tone for the upcoming sessions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polyolefin Elastomer (POE) market experienced a significant price drop, with the USA seeing the most pronounced changes. The overall trend was characterized by a consistent decline, despite positive performance in key sectors like the Automobile and Construction industries.
The primary driver behind the falling POE prices was the decline in crude oil, which caused olefin monomer prices to drop—directly impacting POE pricing. The market saw a notable -13.82% decrease compared to the same quarter last year and a further -2.71% drop from the previous quarter, reflecting a sustained downward trend.
Oversupply, reduced demand, and ongoing market uncertainties contributed to the bearish sentiment throughout the quarter. The quarter-ending price for Butene-Based POE in the USA was USD 2560/MT FOB New Orleans, underscoring the persistent decline in prices. This negative pricing environment was largely shaped by weakening feedstock costs and muted downstream demand, leading to steady price reductions across the region.
APAC
In Q3 2024, the Polyolefin Elastomer (POE) market in the APAC region experienced a price decline, primarily due to several influencing factors. A key contributor to this decrease was the oversupply relative to demand, which created a downward pricing trend. Additionally, weakened demand from critical sectors such as automotive and construction further impacted pricing. The ongoing drop in crude oil prices significantly affected olefin monomer prices, with Ethylene specifically showing a 5.60% decline from the previous quarter. The market sentiment was predominantly negative, evidenced by a 5.55% decrease compared to the same quarter last year, along with a 1.35% decline from the previous quarter in 2024, reinforcing the downward trajectory. While the automobile sector in the Asian market saw a notable uptick, the construction sector underperformed, particularly in major economies like China, which adversely affected POE demand. By the end of the quarter, the price of Butene-Based POE in Japan settled at USD 2750/MT CFR Tokyo, reflecting the prevailing bearish sentiment in the pricing landscape.
Europe
In Q3 2024, the Polyolefin Elastomer (POE) market in Europe experienced a significant decline in prices, particularly in Germany, which saw the most pronounced changes. The quarter was marked by a challenging market landscape driven by various factors, including reduced demand in crucial sectors like automotive, electronics, healthcare and construction, which played a vital role in pushing prices lower. Additionally, volatile ethylene feedstock costs and lackluster market activity further exacerbated the downward price trend. Recent market updates indicate that producers have reduced the prices of olefin monomers, which has substantially impacted the pricing of POE from end suppliers. However the underperformance in the European economy has majorly affected the price of the POE towards lower side. Compared to the same quarter last year, the prices reflected a notable decrease of -10.76%, underscoring a sustained negative pricing trend. Furthermore, a quarter-on-quarter change of -1.30% highlighted the ongoing decline. By the end of the quarter, the price for Polyolefin Elastomer Butene-Based in Germany reached USD 2560/MT FD Hamburg, illustrating the prevailing bearish sentiment in the market's pricing dynamics.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a distinct downward trend in Polyolefin Elastomer (POE) pricing across the North America region. The significant factors influencing market prices this quarter include persistent destocking activities by suppliers, an oversupply relative to demand, and constrained capacity utilization due to logistical disruptions and cost management measures. In contrast the Automobile sector witnessed positivity in the numbers in the respective period which supported the POE price to some extent.
In the USA, which has experienced the most pronounced price changes, the overall market sentiment has been negative. The quarter witnessed a -16.7% decrease in prices compared to the same period last year, reflecting an ongoing supply glut and reduced purchasing activity. From the previous quarter in 2024, there was a -2% decline, suggesting a sustained but moderate reduction in price levels.
The latest quarter-ending price for Butene-Based Polyolefin Elastomer FOB New Orleans in the USA stands at USD 2663/MT. This consistent decrease highlights a negative pricing environment, driven primarily by an imbalance between supply and demand and strategic inventory management by suppliers. Despite growth in certain downstream sectors, the pricing dynamics for POE have not seen significant positive adjustments, leading to a sustained bearish outlook for the period.
APAC
In Q2 2024, the Polyolefin Elastomer (POE) market in the Asia-Pacific (APAC) region faced a notable decreasing trend in prices. The quarter was characterized by various factors contributing to this decline, with balanced supply and demand dynamics playing a significant role. Production levels were consistently stable, ensuring inventory adequacy, while demand from major downstream sectors like construction and automotive remained modest. Despite positive economic indicators in some territories, global economic uncertainties and fluctuating feedstock costs, especially for ethylene, further pressured market prices. Specific to the Japanese market, which experienced the most significant price fluctuations, POE prices demonstrated a marked decline. The overall trend was predominantly downward, influenced by seasonality and weakened industrial activities. The correlation in price changes reflected a concerted response to diminished demand coupled with an ample supply. Compared to the same quarter last year, prices fell by 6.2%, underscoring a negative pricing environment. However, relative stability was observed from the previous quarter of 2024, with no substantial percentage change, indicating a plateauing effect following earlier declines. The latest quarter-ending price for POE Octene Based in Japan settled at USD 3153/MT CFR Tokyo, reflecting a persistent negative sentiment in the pricing environment.
Europe
The second quarter of 2024 has seen a consistent downward trend in Polyolefin Elastomer (POE) prices across the European region. This decline is primarily driven by a combination of factors, including supply chain disruptions, subdued demand from key sectors, and an oversupply of raw materials. Manufacturers and suppliers have been actively engaging in destocking activities, which has further exacerbated the price decline. The construction sectors, traditionally significant consumers of POE, have shown tepid demand while this bearishness is balanced to some extent by the improvement in the Automobile sales, contributing to the overall weak market sentiment. In Germany, the market has experienced the most pronounced price changes within this context. The overall trend for POE in Germany has been markedly negative, influenced by the declining performance of the construction sector and only moderate activity in the automotive industry. The correlation between reduced inventory accumulation and declining prices is evident, reflecting cautious market behavior. From the same quarter last year, POE prices in Germany have fallen by 16.4%, underscoring a significant annual decrease. Compared to the previous quarter in 2024, there has been no percentage change, indicating a stable yet weak market environment. The latest quarter-ending price for Polyolefin Elastomer Butene Based in Germany stands at USD 2865/MT FD Hamburg, encapsulating the negative pricing environment of Q2 2024.
